As the UK grapples with post-Budget tax hikes, AI emerges as a double-edged sword, offering businesses productivity boosts while raising concerns over potential job losses.

Article published (updated) on: 20th November 2024

Credit: thisismoney.co.uk

In Summary:

The UK’s recent Budget, which includes increased taxes and lowered employer National Insurance thresholds, is expected to accelerate the adoption of artificial intelligence (AI) in businesses. Steve Hare, CEO of Sage, a leading UK software giant, predicts that companies will increasingly turn to AI for cost-cutting and productivity gains. Hare emphasized that Sage's AI tools, such as the recently launched Sage Copilot, aim to complement rather than replace human workers, enhancing efficiency in tasks like accounting and business management.

Despite these assurances, analysts warn that the move towards automation may disproportionately impact sectors like retail and hospitality, where low-wage jobs are prevalent. Investment bank RBC Capital Markets predicts more self-checkout systems in supermarkets, while BT's leadership signaled increased AI use to counter rising costs. With Sage’s record profits and plans for a £400 million share buyback, the company stands as a testament to the growing demand for AI-powered solutions amid economic challenges. This development poses critical questions about AI's role in the future of work and its socio-economic implications.

For the full article, visit the original post on: thisismoney: Artificial intelligence to replace workers after Budget, warns boss of UK software giant Sage

Steve Hare, chief executive of Sage, companies already looking to use AI to boost productivity, would step up their efforts post budget.